A fiscal action that is triggered by the state of the economy is called
A) the government expenditure multiplier.
B) discretionary fiscal policy.
C) automatic fiscal policy.
D) generational fiscal policy.

Question

Quizplus · Accepted Answer

Automatic fiscal policy refers to fiscal actions that are triggered automatically by the state of the economy, such as tax revenues decreasing during a recession or spending on unemployment benefits increasing, without the need for explicit government intervention or new legislation.

A Fiscal Action That Is Triggered by the State of the Economy